Author: Xavier Quenon

If you haven’t got the bug yet, here’s why I started building my portfolio.

Well, I can’t speak for others but I can share why I wanted to become a property investor. Don’t worry, I’m not going to rattle off a laundry list of complicated equation-packed stuffy reasons, instead, I’d like to tell you my primary motivator — the reason that trumped all the other reasons — the main reason.

Ok, here it comes, the main reason I became a property investor… To have more control over my calendar!

That’s it.

That’s the reason.

Why is controlling my calendar so important?

Well, here are a few illustrations as follows:

I want to get up in the morning at a time of my choosing and not at a time chosen by my boss. I still get up a 6 am on weekdays but that’s because I want to. On weekends I sleep in because… I want to.

I want to go on holiday when I choose to without having to ask permission. I like it better this way.

I want the flexibility to determine when I work and when I don’t work, when I answer the phone and when I don’t answer the phone.

No guarantee

When I started out as a property investor was there a guarantee I’d someday break free and gain control of my calendar?

No!

There are no guarantees in life.

Wait a minute! Let me backtrack. There is one other guarantee in life and it goes like this…

If you do nothing, nothing will happen!

Or, maybe put another way, if you don’t plant any seed, how can you expect a harvest?

So, I had to plant. Even though there was no guarantee of a harvest, I had to plant property investment seeds. That way I had a fighting chance. I was in the game. I was on the playing field. I was no longer a spectator.

Spectators have zero per cent chance of winning. Spectators can only watch. I wanted to play.

And, here’s an ugly truth, when you play you risk injury; you risk pain; you risk failure.

Here’s a more pleasant truth, by getting on the playing field you give yourself a chance to win!

Did I know my property investment journey would be successful?

No.

But, I knew something else… if I continued doing what all the JOB people around me were doing; I’d have what they have. And I didn’t like what I saw. I saw co-workers 10 or 15 years older and they still had virtually no control over their calendars. I didn’t want that. I wanted something different. So, I had to do something different.

I became a property investor.

Become a property investor… and we’ll help guide you on this journey through the Finance & Portfolio Management aspects

Mortgage brokers have expertise in residential and other property loans. They can also play an important role in helping businesses find and secure commercial and asset finance at competitive rates, by leveraging their network of lending institutions.

With so many lenders and products to choose from, it’s important to get the right business funding mix from the outset. Many brokers have a deep understanding of the commercial sector and the wide range of products available. They’re well placed to identify the most appropriate financing structures for you, based on your type of business and specific needs.

A brand-new baby completely changes your life. Are you likewise got ready for how a brand-new infant might impact your opportunities of buying a home? Here are some things to think about prior to you send your application.

When a lender examines your mortgage application, they take a look at your income, assets, debts and costs before choosing whether they believe you can make the payments. Those figures are likely to alter when you have your first child. That means your eligibility for a home loan could also change.

Changes to your income

A loan provider has to know that your earnings will cover your mortgage repayments, even while somebody’s taking some time off work to be a brand-new mum or papa.

If you’re the primary carer and you plan to leave work briefly or forever, the loss of your earnings will impact your family earnings. When you’re obtaining a loan and preparing to take an employment break, you may require a letter from your employer verifying your return-to-work income.

Both moms and dads might be eligible for adult leave. In a lot of cases, the adult leave pay will be lower than your regular earnings. To obtain an idea of exactly what your brand-new earnings will be, determine just how much parental leave you prepare to take. Also, speak with your employer to learn whether they use any additional privileges. A financial organizer will have the ability to discuss your personal scenario, consisting of any tax advantages you may receive.

Cost of raising a kid

When you compute your expenses, you’ll have to consider the cost of raising your child. As a guide, a University of Canberra study approximated that low-income ($ 1,160/ week) families spend on average 7.4% of their profits to raise a kid aged 0– 4, whereas high income ($ 4,984/ week) families typically spend 4.6%.

Whatever your earnings, when you have a kid your continuous expenses will increase. This implies you’ll have less cash to make mortgage repayments, so the amount you’ll be able to borrow might be less.

Cost of the loan

Prior to deciding on a home mortgage product, research the most likely expense of the loan and the size of the repayments. Lots of loan providers, brokers and realty websites have totally free tools and calculators.

The following products will affect your payments:

The quantity you obtain.

The length of the loan; the average mortgage is 25 – Thirty Years.

The interest rate.

Whether the rates of interest is fixed, variable or combined.

Your financial dedications

A mortgage is a monetary commitment– and so is a child. When you’re preparing to handle both at the exact same time, it’s a smart idea to look at the entire photo.

Initially, examine your current financial situation by pulling together details about your earnings and expenditures, consisting of any existing loans. What payments can you pay for?

Then, using this info, change the amounts to reflect your income and expenditures after having your kid. Exactly what does that do to your mortgage repayments?

Although raising a child will be an added expense, you might discover that you can reduce your discretionary expenses– such as dinners and vacations. Depending on what does it cost? you can reduce, this might even give you about the very same monetary capability. Or possibly you can still pay for to service a mortgage however might not be able to borrow as much as you first believed.

You’ll need to choose whether a mortgage is a worthwhile debt, given that your home income and costs will change when your baby comes along.

Do you wish to begin a household now, or do you wish to build a nest? An informed choice may make both possible if you comprehend the monetary changes a child will bring. To discuss your mortgage alternatives, call your mortgage broker. At Go Mortgage, we are the expert mortgage broker company that can help you find the ideal home for your household. Contact Go Mortgage today on 1300 855 244 or check out https://www.gomc.com.au/ to find out more.

Nine Network Finance Editor Ross Greenwood breaks down what you need to know about today’s interest rate decision.

1. Will the RBA move rates today?

No. Money markets are pricing in a 95 percent chance of no rate move. All senior economists surveyed by Bloomberg say no rate move.

2. Does that mean banks will keep their rates on hold?

No. Banks are now moving rates to a different beat. They’re watching long-term Government bond yields rise (that’s the market rate on 10 year bonds) and the money market short-term rates have also increased. The banks are also seeking to limit their exposure to riskier areas of the property markets, so they are either rationing out capital or making it harder for some investors to get finance.

3. Is the Reserve Bank likely to move rates this year?

Depends on who you talk to. The broad view is that if rates move, they will be cut. Some say there will be two rate cuts caused by persistently low inflation and sluggish economic growth. But as the US raises interest rates, the money market rates have moved higher, there is a counter-view that if Australia’s economy looks stronger by the end of the year, there will be pressure on the Reserve Bank to raise interest rates.

4. So should I fix my mortgage at the moment?

The one thing you can bet is that the banks will be watching money markets and rates more closely than you will be. The decision to take a fixed rate loan depends on personal circumstances – like whether you need to be absolutely certain of your payments, or how much of your loan are you likely to pay off in the next few years.

My suspicion (unless there’s a global economic catastrophe, of which I’d suggest there’s minimal chance right now) is that banks will try to edge up rates over the next 12 months. But also watch the difference between the fixed and variable rates … if the variable rates are much higher, that might also swing your decision.

5. What should I watch to get an idea of which way rates will move?

There are a few indicators. Inflation is key. It comes out quarterly from abs.gov.au. The March quarter figures come out on April 26. If underlying inflation starts to creep back above 2 percent the chances will increase that the RBA will raise rates. Another key is economic growth numbers. The December quarter figures are out on March 1. Again, if the economy starts to grow more quickly (above 3 percent annually) the chance of a rate rise will improve. You also see this through the dollar. It’s around 76.6 US cents right now. It’s rising, partly because of the economic and rate outlook for Australia, because of improving commodity prices.

6. Anything else?

Yes. Watch the Reserve Bank itself via rba.gov.au. The rate decision comes down promptly at 2.30pm AEDT and is broadcast live on Channel 9. Accompanying that decision is a brief statement by Reserve Bank Governor Philip Lowe. Tomorrow he gives a key speech, that will be watched closely. On Friday the Reserve Bank also publishes its Monetary Policy Statement, that goes into more detail about the local and global economy and its observations that lead to its interest rate decisions.

Discovering the ideal home isn’t really constantly simple. Despite the variety of houses for sale, the unpredictable nature of the marketplace can make home hunting exhausting.

If you’ve tried property sites, newspapers and property representatives’ windows without success, here are five more non-traditional techniques to attempt.

1. Do a letterbox drop

This is a technique most property representatives use to win listings, however there’s absolutely nothing stopping you from taking the very same method.

If there are specific streets you like, or you’re searching for a specific type of home, attempt composing a customised letter to private homeowner saying you have an interest in buying their home. If you’re fortunate, you’ll stimulate the interest of somebody who’s been thinking about selling. They might be brought in by the prospect of a quick, simple sale. Make certain your letter includes your contact information and emphasises that your interest is genuine.

2. Knock on doors

If you’re feeling great, attempt knocking on the doors of homes you ‘d love to own. Timing is whatever with this technique– if luck is on your side, you could fulfill a property owner who’s eager to offer without the effort of a company campaign. However, not everybody values a face-to-face situation, so keep it good and walk away if somebody isn’t interested.

3. Try to find peaceful or off-market sales

Numerous homes are offered without any sort of sales campaign since not every supplier wants individuals to understand their house is on the market. If a property is being sold due to a relationship breakdown, monetary troubles or some other household complication, vendors may wish to keep the sale ‘hush hush’.

The very best method to gain access to off-market sales is to keep in constant contact with regional agents. Vendors frequently desire an off-market sale to be quick, so being top of mind with representatives is essential. You’ll want representatives to consider you when they get an off-market listing that has to be offered immediately.

4. Explore ended listings

Websites such as www.oldlistings.com.au allow you to search through old ‘for sale’ and ‘for rent’ listings. Utilizing this info, you may be able to target properties that were passed in whose owners may still be intrigued in selling. Likewise, you may be able to discover rental homes in the ended listings, then call the owners with a real offer to buy.

5. Watch for garage sales

Yard sale can sometimes be an indication that a home will come onto the market. The homeowners might be attempting to sell their mess prior to they list the property for sale.

If you see a yard sales advertised at a property you want to purchase, make certain you attend. Asking the homeowner if they prepare to offer could offer you a running start on other home buyers– you might even make an offer prior to the property hits the market.

If you have success with any of these methods, you’ll need to be prepared to make an offer. Prior to you begin letterbox dropping or knocking on doors, speak with your mortgage broker to arrange financing. The team at Go Mortgage can assist you with your mortgage and re-finance needs. Contact Go Mortgage today on 1300 855 244 or check out https://www.gomc.com.au/ for additional information.

Ever wondered what your home is worth in Australia? 

If you’ve ever bought, sold, or refinanced property, you may have experienced something confusing: the bank’s valuation can be very different from the real estate agent’s estimate.

One might say your home is worth $900,000, while the bank’s valuation comes back at $820,000. Naturally, the first question most homeowners ask is: which number is correct?

Understanding the difference between a bank valuation vs real estate appraisal is essential when buying, selling, or refinancing property.

The short answer is that both valuations serve different purposes. A real estate agent estimates what buyers might pay in the current market, while a bank valuation focuses on risk and lending security.

Here’s how each valuation works and how to determine what your home is really worth in Australia.

Key Takeaways:

• A real estate appraisal estimates what buyers may pay for a property in the current market.
• A bank valuation is typically more conservative, because lenders use it to assess lending risk.
• The seller’s asking price doesn’t always reflect true market value.
• Banks rely on independent valuers when conducting a property valuation for a mortgage.
• The true value of a property ultimately depends on what a buyer is willing to pay.

What is a Property Valuation?

A property valuation is an estimate of what a property is worth at a specific moment in time.

This estimate usually considers factors such as:

• Recent comparable sales in the area
• The property’s condition and size
• Location and surrounding amenities
• Current property market trends

However, the purpose of the valuation determines how it is calculated and how conservative it may be.

For example, a property valuation for a mortgage is completed to determine how much a lender is willing to lend against the property.

Because of this, the lender’s valuation often becomes the most important number when purchasing or refinancing property.

If you’re unsure how these assessments work, it’s worth reading more about can you trust property valuations and how they are conducted.

The Owner’s Asking Price

When a property is listed for sale, the first number buyers usually see is the seller’s asking price.

This price represents what the owner hopes to achieve when selling the property.

However, the asking price is often influenced by factors beyond market data, including:

• The money spent on renovations
• Emotional attachment to the home
• Expectations based on nearby sales

For example, a homeowner may believe their property is worth $1 million because they recently renovated the kitchen and bathrooms.

But if similar homes in the area are selling for around $900,000, buyers may not be willing to meet that price.

This is why asking price and market value are not always the same thing.

The Real Estate Agent’s Appraisal

When a real estate agent estimates a property’s value, they usually prepare a Comparative Market Analysis (CMA).

This analysis compares your property with similar homes that have recently sold in the same area.

Agents typically assess:

• Property size and land size
• Number of bedrooms and bathrooms
• Renovations and upgrades
• Location and nearby infrastructure

By comparing similar properties, agents aim to estimate what the property might realistically sell for in the current market. 

However, agent appraisals can vary. Some agents may provide optimistic estimates to secure the listing, while others may price more conservatively to encourage quicker sales. For this reason, homeowners often compare multiple appraisals and recent sales data when determining what their home is worth in Australia.

How Bank Valuations Work

When applying for a mortgage or refinancing, lenders typically order an independent property valuation. This valuation is completed by a licensed property valuer rather than the bank itself.

The purpose is straightforward: the property serves as security for the loan. If the borrower cannot repay the loan, the lender may need to sell the property to recover the outstanding debt.

Because of this risk, lenders often prefer conservative valuations. A typical home valuation for refinancing or purchasing will consider:

• Recent comparable property sales
• The property’s physical condition
• Market demand and property trends
• Estimated selling timeframe

The valuer’s final figure represents what they believe the property would likely sell for under normal market conditions.

Why is Bank Valuation Lower than Market Value?

One of the most common questions borrowers ask is: why is bank valuation lower than market value? There are several reasons this happens.

Risk management

Banks aim to minimise lending risk. A conservative valuation ensures they are not lending more money than the property could realistically sell for.

Forced sale considerations

In some situations, valuers consider what the property could sell for within a limited timeframe, rather than the highest possible market price.

Lending policy differences

Each lender has its own valuation policies, which means the same property could receive slightly different valuations from different lenders.

Changes to lender guidelines

Changes to lender guidelines can also influence valuations, which is why it’s important to understand new valuation rules and how they affect borrowers.

These differences can impact your loan-to-value ratio (LVR) and borrowing capacity.

When a Higher Valuation Works in Your Favour

While lower valuations are common, sometimes a property valuation can come in higher than expected. When this happens, it may allow borrowers to:

• Borrow more when purchasing a property
• Avoid lenders mortgage insurance (LMI)
• Access additional equity in their home
• Secure better refinancing terms

This is particularly useful when exploring a home valuation for refinancing, where a higher property value can unlock additional borrowing power.

If you already own property, understanding equity in your property can help you see how valuations affect your borrowing options.

What Determines the “Real Value” of a Property?

With different valuations available, homeowners often ask: what is my home worth in Australia?

The truth is that property valuation is not an exact science.

Even experienced agents and professional valuers may reach slightly different conclusions because they rely on:

• Comparable sales data
• Market conditions at the time
• Professional judgement and experience

Ultimately, the real value of a property is determined by what a buyer is willing to pay in the current market.

In strong markets, buyers may compete and drive prices higher than expected. In slower markets, properties may sell below their asking price. Looking at a value range rather than a single figure is often the most realistic approach.

For example:

• Real estate agent appraisal: $820,000 – $860,000
• Bank valuation: $810,000
• Comparable sales: approximately $830,000

In this case, the realistic market value likely sits somewhere within that range.

Why Valuations Matter for Home Loans

Property valuations play a crucial role in mortgage approvals because they determine how much a lender is willing to lend.

For example:

• If a property is valued at $800,000 and the lender allows an 80% LVR, the maximum loan may be $640,000.
• If the valuation increases to $850,000, the borrowing capacity may rise to $680,000.

This difference can significantly affect:

• Deposit requirements
• Refinancing opportunities
• Investment strategies

Understanding how valuations work is especially important when buying your first home or planning future property purchases.

Getting the Most Accurate Picture of Your Home’s Value

If you want to better understand your property’s value, it’s helpful to consider multiple sources of information. You can start by:

• Reviewing recent comparable sales
• Getting appraisals from multiple real estate agents
• Speaking with a mortgage broker about lender valuation processes

Combining these insights will usually give you a clearer picture of the likely value range for your property.

Speak to Go Mortgage Before You Buy or Refinance

Property valuations can directly affect your borrowing capacity, refinancing options, and overall property strategy.

At Go Mortgage, we help borrowers understand how lender valuations work and how they may influence loan approval.

Whether you’re purchasing property, refinancing your loan, or simply trying to determine what your home is worth, our team can guide you through the process.
If you’d like personalised advice, contact Go Mortgage for an obligation-free conversation about your home loan options.

If you have a bad credit rating, getting a home loan could prove difficult. There are however some steps you can take to give yourself the best chance of being approved.

Whether it’s your first home loan, or an investment residential property, obtaining the support from a mortgage broker can assist you to select the ideal home loan and can save you a lot of time as well as assistyou conserve a lot of cash. But, it’s important to note that not all mortgage brokers coincide. Prior to you pick a mortgage broker, you should make sure that they are going to help you to meet your requirements as well as obtain you the ideal lending. There are few different means you could guarantee you’re selecting the appropriate mortgage broker. Beloware a couple of questions to ask:

1. When did you start your mortgage broker business?

With many mortgage brokers in business, it might make you feel a little bit a lot more comfortable if you’re handling somebody that is seasoned as well as has been working as a mortgage broker for some time. With experience commonly comes greater success, so picking someone that has experience will likely locate you a broker with an excellent performance history of discovering the right lendings for clients. It never ever harms to inquire how much time they have actually been working as a mortgage broker and the appropriate broker will certainly have no concerns in disclosing this info to you. In fact, they will certainly be happy in order to help sell themselves to you if needed. An excellent mortgage broker will certainly also likely have some positive customer testimonies, so if they do not offer them, you could certainly inquire if they have any readily available to show you.

2. Are you a certified broker and/or are you a member of any specialist mortgage sector body or corporations?

Like any field of work, there are always regulating bodies that require a membership to be connected with them. It’s constantly essential to inspect a broker’s credentials and credentials before proceeding with their services. In fact, major lending institutions do call for brokers to finish a minimum Certificate IV in Financial Services qualification as well as to either hold an Australian credit licence or be authorised under a qualified home loans lender or aggregator. Various other memberships they must additionally belong of is the Mortgage and Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA). These memberships and also organizations are normally on screen by the mortgage broker, but if doubtful, ask.

3. Do you have access to a range of different mortgage loan providers?

With many different loan providers to select from, the mortgage broker you select ought to have the ability to search and also use you a vast array of financings from a selection of Australian loan providers. There is no harm in asking how many they have access to as well as if they could give you with a full checklist. If they have the ability to do so, you will certainly have the self-confidence in their get in touches with and also be completely knowledgeable about the wide option of lenders that the broker will have to pick from.

4. Exactly how do you pick the very best lender/loan?

The major work for your broker is to find the very best home mortgage for your personal demands. Locating the best price is certainly vital, nonetheless the broker does likewise should have the ability to evaluate your personal requirements and after that have the capacity to offer you with a number of various product choices. The mortgage broker should also be able to reveal you exactly how they execute their study as well as how they rate the choices they provide to you. Even if a mortgage is the most effective price, it might not be the very best one for you.

5. What compensations will you be getting?

Although this concern could appear blunt and ahead, you do have to keep in mind that mortgage brokers do receive a charge or revenue whenever they complete a deal with a client. Knowing how much they’re qualified to when they give a customer with their mortgage options will certainly assist you to understand exactly how they are paid and also how their income might influence you as well as the items that are recommended to you. The broker is obliged to reveal all compensations as well as settlements they are qualified to obtain.

6. What does it cost? will I be able to obtain?

When the broker undergoes your personal details and also circumstances, they ought to have a more clear idea of how much you could borrow. They will certainly consider different elements such as your down payment quantity, income, properties as well as your month-to-month outgoings. When they have actually examined your needs and your income, they will then have the ability to give you a far better concept of how much you can borrow. This will certainly for that reason aid you to get a much better understanding of exactly what sort of property you can search for and also the budget you have to collaborate with.

7. Are you able to help with any type of very first residence purchasers gives?

Depending on the state or territory that you reside in, there may be novice home buyers government gives as well as incentives that you could be eligible for. It could likewise depend upon the kind of residential property you are buying, such as a new home or if you will certainly be living in the house or otherwise. Relying on your situations, the mortgage broker you select must have an understanding of what federal government grants and rewards you might be qualified to. They must additionally be able to help you with the paperwork to request such advantages.

8. What is the best loan framework for me?

With a lot of financings on the market, with differing structures, it can be difficult to understand which is ideal for you. An excellent mortgage broker could describe the different structures as well as why a particular method of funding will certainly work better for you as well as your needs. Be sure to additionally ask if the lendings they suggest have a redraw facility, an interest offset account as well as whether you must be paying principal as well as interest or interest only.

9. Where to from now?

Make sure you recognize the procedure and also just what will certainly should be carried out in order to get your finance application underway and also accepted. Ensure you know what documents is additionally needed of you, such as pay slips, ID files and more. Your mortgage broker ought to be able to offer you a checklist of all the products they need in order to help you to obtain approved for your finance.

10. The length of time will every little thing take?

Your mortgage broker ought to be able to provide you a rough estimate to get your pre-approval in order so you could begin searching for the best home. The broker needs to likewise be able to offer you an idea of the timeline from pre-approval, final approval, the settlement procedure as well as throughout to the moment you obtain the keys.

To get the ball rolling on your home loan, and discovering the ideal mortgage broker, asking the appropriate concerns will aid you to obtain the ideal loan for your needs.

If you’re seeking a mortgage broker, speak with the pleasant group at Go Mortgage. Go Mortgage can help you find the right finance for your needs, whether it’s a first residence, an investment home or a second residence. Contact Go Mortgage today on 1300 855 244 or visit them at https://www.gomc.com.au/